Ethereum (ETH) has reclaimed the $3000 price level for the first time since February of this year. ETH’s rebound follows Bitcoin’s (BTC) climb to a new all-time high of $118,000. ETH is up by 8.1% in the daily charts, 16.9% in the weekly charts, 22.7% in the 14-day charts, and 7.5% over the previous month. While the rebound brings much-needed relief for many investors, ETH is still down by 2.5% since July 2024.
Ethereum Follows Bitcoin’s Trajectory
Bitcoin (BTC) has delivered incredible returns over the last year. The original crypto is up by 6.2% in the daily charts, 8.3% in the weekly charts, 10% in the 14-day charts, 7.8% in the monthly charts, and 103.4% since July 2024.
BTC’s rally has triggered a market-wide rally. Ethereum (ETH) and other crypto assets are likely following BTC’s trajectory. BTC and ETH ETFs have seen non-stop inflows over the last month. The inflows did not stop even during uncertain times.
Also Read: If Retail Returns, Bitcoin (BTC) May Skyrocket — 4 Early Clues
Institutional money has played a significant role in the latest market rally. Retail players may be waking up right now. Small wallets were stagnant for quite some time as volatility took hold. Global geopolitical tensions and trade wars may have spooked retail investors.
What’s Next For The Two Biggest Cryptocurrencies?
There is a high probability that Bitcoin (BTC) will breach the $120,000 mark very soon. Ethereum (ETH) may follow BTC’s path. BTC could face a slight correction after it hits $120,000. Investors may begin to book profits. BTC may also continue its rally till around September, before facing a dip. Historically, BTC has faced a dip about 18 months after its halving. We could see a similar pattern this year.
Ethereum (ETH) could rise to around $3,500 if BTC hits the $120,000 mark. ETH could face a correction if BTC faces a dip.
How the market unfolds is yet to be seen.